The survey found that most businesses were more concerned about external
rather than internal threats. The internal
threats that businesses were most wor-
ried;were;low-tech,;with;42;percent;of
respondents stating physical loss of paper documents as a key concern. The
same percentage also listed an insider
intentionally breaching information as a
key threat.

The number one external threat is
hacking, according to the survey. Half
(51 percent) of the businesses questioned said they were worried about the
possibility of being hacked for financial
gain,;compared;to;46;percent;who;were
concerned about being hacked for political reasons. Hacking by a competitor,
however, was viewed as a serious threat
by;41;percent.

Inga Beale, CEO of Lloyd’s, warned
that “Firms may still be too complacent as
regards how they are prepared for a cyber
risk incident and what the implications of
one;could;be;for;their;business.”

Awareness of cyber insurance

According to the survey, 73 percent of
business leaders have a limited knowl-
edge;of;cyber;insurance,;and;50;percent
don’t know that cyber coverage for data
breaches is available.

In commenting on the survey, Bealereminded European businesses that thenew EU regulations will mean that theyhave to be more responsive to any cyberincident than may have been the case inthe past. “Insurance companies providemore;than;just;cover;for;any;lost;income,”she added. “They offer a wrap-aroundservice that can keep businesses on theright side of regulation and help protecttheir;customers;and;their;reputation.”The;survey;questioned;346;senior;de-cision-makers at large companies (withrevenues;of;€250;million;or;more);acrossEurope.;Respondents’;job;titles;includedchief executive officer, chief financial offi-cer, chief operating officer, chief informa-tion officer, chief technology officer, chiefrisk officer and general counsel.

insured value of property in coastal states
has historically doubled every decade.

Coastal;communities;generally;occupy
low-lying locations with direct access to
the sea, and this exposes them to damage
from wind and water, which is magnified
by rising sea levels and land subsidence. In
the;United;States,;sea;level;rise;and;severe
weather events are thought likely to increase the portion of coastal areas at risk of
flooding;55;percent;this;century,;accord-
ing;to;a;report;commissioned;by;FEMA.

4. Inland flood

Because;land;for;construction;is;scarce,
riverine floodplains are another area
where development is growing.

Almost a fifth of the population of
Hungary lives on floodplains, for example, and in England, almost one sixth of
all properties are located on floodplains
having at least a 1-in-1,000 risk of floods.

A recent report from the EuropeanEnvironment Agency claims that morethan 80 percent of Europe’s floodplainshave been barricaded by flood defenses,drained and built on; it predicts a five-fold;increase;in;flood;damage;by;2050.;Ofthis;additional;flooding,;about;one;fifthwill be attributable to more intense rain-fall, and the remainder to developmenton floodplains. Flood risk, however, isnot confined to floodplains; in the UnitedStates;for;example,;30;percent;of;NationalFlood;Insurance;Program;insured;lossesoccur off floodplains.

5. Wildfire

The number of homes in the wild land-urban interface — where natural vegetation meets urban expansion — is increasing, and in such locations successful fire
prevention and suppression efforts can be
hard to achieve.

Risk;has;been;exacerbated;by;several
factors, including, ironically, the practice
of extinguishing wildfires as quickly as
possible, which can enable brush to grow
and furnish additional fuel.

The data suggest an upward trend in
U.S.;wildfire;losses;over;the;last;two;de-cades, despite the fact that the frequency
of wildfires has been relatively steady,
indicating that the increase is driven primarily by the growing value of exposed
properties.